Key Highlights of 3Q2018:
Key Highlights of YTD 2018:
Announces Revised Dividend Policy |
Telekom Malaysia Berhad (TM) today announced its financial results for the quarter ended 30 September 2018. The Group saw steady operational performance, amidst heightened challenges in its operating environment, namely industry and market challenges impacting its revenue.
The Group held revenue steady, at RM2.95 billion in 3Q2018, 0.3% higher from RM2.94 billion in the previous quarter, on the back of higher data as well as other telecommunication related services revenue.
Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for 3Q2018 grew 11.3% to RM941.4 million as compared to RM845.9 million in 2Q2018 mainly due to lower operating costs. Group Normalised EBITDA, which excludes non-operational items, increased 13.1%, at RM930.9 million.
However, due to impairment loss on wireless and fixed network assets, the Group recorded Loss Before Interest and Tax (LBIT) at RM631.8 million for 3Q2018. Without the reported impairment and other non-operational items, the Group’s Normalised Earnings Before Interest and Tax (EBIT) is at RM315.6 million for 3Q2018, a 39.4% increase against Normalised EBIT of RM226.4 million in 2Q2018.
Consequently, the Group reported Loss After Tax and Non-controlling Interests (LATAMI) of RM175.6 million compared with RM102.0 million Profit After Tax and Non-controlling Interests (PATAMI) in the prior quarter. TM’s core net profit, or Normalised PATAMI excluding non-operational items, stood at RM266.4 million, a 71.0% improvement sequentially.
The total capital expenditure (CAPEX) investment for the first nine months of 2018 at RM1.32 billion, or 15.1% of revenue. This is within TM’s full year capex guidance of 19-20% of revenue. By asset type, access comprised 62% of total spending, followed by core network at 15% and the remaining 23% was for support systems.
Imri Mokhtar, Acting Group Chief Executive Officer, TM said: “We continue to face various headwinds from competitive market dynamics. Nonetheless, we held revenue steady over the quarter, and saw our cost reduction initiatives bearing fruit, by recording improved operational performance for QoQ and YoY.
However, in light of the continued pressure from industry and market challenges and its impact on our revenue thus far, we have taken a prudent view, by undertaking the impairment of our network assets – this resulted in close to a RM1.0 billion impairment loss this quarter.”
“The operational improvement in 3Q2018 is testament to the Group’s commitment to the four (4) pillars of our Performance Improvement Programme (PIP 2018) - Revenue Uplift / Preservation, Sustained Profitability, Improved Cash Flow and Increased Productivity that will navigate us through these headwinds. We are rationalising our business, reducing operating costs and focusing our resources on the opportunities that will have the most impact,” Imri elaborated.
“We currently have 2.29 million broadband customers and our unifi customer base continues to grow at 1.26 million as at end of 3Q2018 as compared to 1.06 million as at the end of the corresponding quarter last year. In terms of convergence, we saw more customers moving up the value chain with having triple-play services and above, evidenced by our convergence penetration now at 48% of TM’s household penetration compared with 39% this time last year,” he added.
“We will continue to strengthen our products and services portfolio and we are stepping up how we aggressively compete in the market, with greater sales and Go-To-Market activities on the ground. We are also working hard to reach more customers with various fit-for-purpose technologies to ensure that everyone can have the benefit of higher broadband speeds and enhanced experience. On top of that, we also have continuous engagements with the Ministry and the regulator to work toward mutually beneficial outcomes - for an improved broadband experience and help build a more balanced and inclusive digital nation, whilst at the same time balancing the business sustainability of the Group and the interests of our other stakeholders.”
TM also announced a revised dividend policy which states that the Company intends to distribute yearly dividends of 40 to 60% from its PATAMI. Dividends will be paid depending on overall business and earnings performance, capital commitments, financial conditions, distributable reserves and other relevant factors. The dividend policy will take effect from the next dividend declaration.
“This is a matter of great importance to us. In light of the current operating landscape and after careful consideration of the potential impact on our earnings alongside our efforts to transform the Company to adapt thereto, the Board has determined the review of our dividend policy to support TM’s long-term strategic objectives.”
As Malaysia’s Convergence Champion, TM remains committed to fulfilling Malaysians’ digital and communication needs of all customer segments i.e., consumer, SME, corporate enterprises, public sectors, access seekers etc via our business clusters, unifi (consumer & SME), TM ONE (Enterprise and Public sectors) and TM Global (Global and Wholesale).
Prospects for the Current Financial Year Ending 31 December 2018
The recent industry challenges and market environment have had major impact to the overall revenue estimates and earnings of TM Group in the financial year. TM anticipates that the challenging environment will persist for both its retail and wholesale segments. In the midst of these challenges, TM will continue to focus towards strengthening performance of its core business and operations.
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unifi is now available in Mukah!
TM continues to empower the digital transformation in sub-urban and undeveloped areas Telekom Malaysia Berhad (TM) continues to strengthen its position as Malaysia’s Convergence Champion, bringing unlimited experiences, unmatched choices and unbeatable value to customers in Sarawak with its comprehensive suite of High Speed Broadband service offerings when the Company, through TM Sarawak recently expanded its unifi service to Mukah Division, in Mukah, Sarawak. A launching ceremony to celebrate the milestone was held at the Resident Office for Mukah Division and graced by Hajah Hamdiah Haji Bakir, the Resident of Mukah Division, together with Jafer Sadig Abdul Lathiff, State General Manager, TM Sarawak and Awang Abdul Khairulannuar, Business Head, TM Sibu. In her speech, Hajah Hamdiah said, “The unifi service offering in Mukah is timely as Sarawak is currently embarking on digital economy to further propel its economic growth. The telecommunication infrastructure to support high-speed internet connectivity needs to be made available in order for digital economy to be adopted successfully for the benefits of the business and residential communities in Mukah. As the nation’s trusted telecommunications services provider, with its extensive network and expertise, we believe TM is more than capable to facilitate our digital transformation journey. We hope TM will continue to further expand its unifi service throughout the state not only covering the urban areas but also the sub-urban and rural areas to bridge the digital gap with their urban counterparts.” Meanwhile, Jafer Sadig said: “The expansion of TM’s unifi service in Mukah fulfills the demand from our customers and it will enable the local communities, specifically in Mukah, Sarawak to enjoy fully converged communications services; unifi Broadband, unifi Mobile, unifi Wifi and unifi TV. The availability of unifi in Mukah is hoped to spearhead Sarawak’s Digital Economy, bridging the digital gap, connecting people wherever they are via digital connectivity, encouraging online e-commerce, e-banking and e-payments; true to our brand promise of Making Life and Business Easier, for a better Malaysia. We also would like to take this opportunity to acknowledge the hard work and dedication of the entire Warga Keluarga TM who have made this achievement possible. As the nation’s key partner in supporting the Government’s inspiration of providing High Speed Broadband access with an affordable price, we are committed to transform the landscape of Sarawak with advanced telecommunications services to spur the economic growth via digital opportunities at the urban areas as well as the sub-urban areas.” With this expansion, unifi is now available in Mukah in key areas which include Politeknik Mukah until Kingwood Resort, Menara Pehin which houses most of the State Government departments in Mukah including Regional Corridor Development Authority (RECODA) - the administrator for Sarawak Corridor of Renewable Energy (SCORE). The expansion will also include Jalan Orang Kaya Setiaraja and Jalan Petanak which will receive the service by end of September 2018. Further expansion will cover other areas such as Jalan Medan Setiaraja, Jalan Tellian, Jalan Hj Latip, Jln Kampung Pinang, Jalan Mohammad Fauzi, Taman Pelita Jaya and Jalan Mukah/Oya while other locations will be fiberised by unifi in stages. “In line with the Broadband Improvement Plan, I’m also excited to share that our new unifi package, unifi Basic are now available for everyone at an affordable price of RM79 per month, bringing Malaysia in the group of other neighboring Asian countries (other than City State Countries) which offer fixed high speed broadband of 30Mbps at an affordable price,” Jaffer continued. New unifi Plans unifi is now available with simplified offerings in two (2) new plans to cater to the dynamic needs of all customers. The existing unifi Basic plan which offers the speed of 30Mbps (60GB quota) at RM79 per month is now open for all. Subscription to this plan will come with 17 free channels on playTV@unifi app which can be downloaded on Apple Store or Google Play. For customers who prefer unlimited quota to cater to their advanced digital lifestyle such as online entertainment, home surveillance, e-sports among others, the new unifi 100Mbps plan is available at only RM129 per month. This will come with unifi TV’s choice of premium entertainment packages with either Aneka Plus, Varnam Plus or Ruby Plus package. In Sarawak, unifi is currently available at 24 areas comprising more than 172,000 premises passed in 24 areas such as Kuching, Samarahan, Sri Aman, Sibu, Bintulu, Miri, Limbang among others. To date, there are over 75,000 unifi customers in Sarawak. To find out more on unifi’s latest offerings, please visit unifi.com.my.

68 excellent YTM scholars honoured at ’Majlis Anugerah Kecemerlangan Akademik’
Telekom Malaysia Berhad (TM) via its foundation Yayasan Telekom Malaysia (YTM) recently recognised 68 outstanding graduates under its scholarship programme who have completed their studies at various levels from local as well as overseas universities at ’Majlis Anugerah Kecemerlangan Akademik 2018’. 16 of the graduates completed their studies with flying colours when they achieved first class honours in their respective courses. Meanwhile, TM’s university, Multimedia University (MMU), produced 44 graduates from the overall total, of which 12 graduated with first class honours. The awards were presented by Tan Sri Dato’ Seri Dr. Sulaiman Mahbob, Chairman of TM who is also the Chairman of YTM and Dato’ Sri Mohammed Shazalli Ramly, Managing Director / Group Chief Executive Officer, TM in a ceremony held at TM Convention Centre, Kuala Lumpur. Also present at the ceremony were Nor Suhaimi Sulong, Acting Chief Human Capital Officer, TM, Abdul Hamid Hashim, Director of YTM and YTM Board of Trustees. "I wish to congratulate the recipients for their outstanding achievement. YTM is indeed proud to be an education accelerator and career development provider for our graduates. I hope that these YTM scholars will continue to excel in their career and contribute effectively to TM in facing the challenges of the digital era,” said Tan Sri Dato’ Seri Dr. Sulaiman. “I’m also proud to see that most of the first class graduates recognised today are from our own university, MMU. As the trusted partner in key nation-building initiatives including education, we at TM Group remain committed to our role as the country’s key enabler in the delivery of innovative digital services and solutions for the education sector towards building a knowledge-based workforce for the country. In the imminent fourth industrial revolution or aptly known as the Industry 4.0 today, there is even greater need to produce not only competent talents in ICT, Multimedia and digital technologies, but also those in related disciplines who are able to embrace these technologies, in order to form a viable innovative ecosystem for the nation. Spearheading TM’s education cluster in the past 20 years, MMU plays a vital role in meeting this need by providing quality industry-relevant education and training, whilst ensuring a steady pipeline of highly capable talents with an entrepreneurial mindset to equip the nation,” he added. MMU is always ready to prepare its graduates in fulfilling current and future industry needs. With its updated curriculum and dynamic learning environment, the university emphasises on a well-rounded education system in producing high quality of graduates. TM through YTM has been supporting the graduates from foundation studies up to their first bachelor degree. Recipients of YTM scholarships will not only receive financial aid throughout their studies, but will be attending self-development programmes to enter the career world. Besides education, YTM also embarks on sustainable efforts to preserve our local heritage and culture.

TM Melaka contributes pendarfluor lamps to those in need in Melaka
In line with its vision of “Making Life and Business Easier, For A Better Malaysia”, Telekom Malaysia Berhad (TM) through TM Melaka today lit up residences of those in need particularly in Durian Tunggal area with its contribution of pendarfluor lamps. A total of 1,000 pendarfluor lamps were handed over to deserving families in Kampung Gangsa, Durian Tunggal by YB Mohd Sofi Wahab, Exco of Public Works, Transport & Public Utilities, who is also the Durian Tunggal Assemblyman. Also present at the handover ceremony was Meor Shahril Anuar Ahmad Rathuan, State General Manager, TM Melaka. The pendarfluor lamps were gathered from an upgrading exercise of the lighting system at Menara TM Melaka building which saw the replacement of pendarfluor lamps to LED lights towards a more efficient energy consumption. From the upgrading exercise, TM Melaka managed to gather a total of 3,000 pendarfluor lamps to be contributed to the beneficiary groups. This is in line with the Group’s effort in efficient waste management and recycling of usable office equipment. Meor Shahril Anuar who mooted the idea said, "TM Melaka embarked on the upgrading exercise in 2017. With the initiative, TM Melaka has recorded substantial savings in our electrical expenditure while increasing the awareness on green practices amongst the staff. Besides this upgrading exercise, at TM Melaka, we continue to support one of the three-pronged approach of the Company’s Corporate Responsibility (CR) initiatives namely the environment with various other green initiatives. This include recycling of used papers, encouraging the employees to bring their own food containers when buying food at the cafeteria as well as dissemination of periodical information on green practices to Warga Keluarga TM Melaka.” “At TM, we seek to minimise our use of materials as well as the generation of waste in order to lessen the pressure on the world’s natural resources. We employ the 3R principles of reduce, reuse and recycle throughout the Group, instilling the practice in our employees as well as those of our contractors. The distribution of the used pendafluor lamps to the communities today is an example of our initiatives towards this end. As a result of our ongoing 3R efforts, in 2017, we reduced more than 11% in solid and scheduled waste generation in TM’s selected buildings,” Meor elaborated. In addition to the Durian Tunggal area, TM Melaka will also contribute the pendarfluor lamps to those in needs in the areas of Ayer Keroh and Paya Rumput. Besides residences, the lamps will also be contributed to mosques, schools, hostels and multipurpose halls.